In response to the recent influx of Bitcoin into exchanges, analytical firm CryptoQuant pointed out that similar inflows occurred before the 312 crash in 2020.
Bitcoin Hits All-Time High, Ancient Miners Cash Out?
CryptoQuant, a data analysis firm quoted on the chain, stated that during the period when Bitcoin reached a historical high of $69,000 and fell to $62,000, about 6.9 million dollars’ worth of 1,000 Bitcoins were transferred to Coinbase (suspected selling).
This address has been dormant for more than ten years, and CryptoQuant claims that this address was involved in mining activities in the early days.
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CryptoQuant analyst Bradley Park said:
Given the market price fluctuations of $100 per Bitcoin in the trading order book, the liquidity of 5 to 10 Bitcoins per 100 dollars, selling 1,000 Bitcoins is likely to cause a significant price drop, especially when other potential traders are waiting for Bitcoin to reach a historical high before shorting.
Miners’ BTC Inflow into Exchanges
312 Crash Occurred in the Halving Year of 2020
Bradley Park also mentioned that the recent inflow of Bitcoin into exchanges reminded him of March 12, 2020.
At that time, as the Covid-19 pandemic quickly spread globally and the US stock market experienced several circuit breakers, Bitcoin plummeted from $7,981 to $3,791 (-51.26%), and there was also a large inflow of Bitcoin into exchanges before the crash.
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“March 12th” – A Cryptocurrency Devil’s Day, Setting Those Records
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However, from CryptoQuant’s overall tweets on X, they still hold a positive attitude towards Bitcoin. CryptoQuant pointed out that the recent pullbacks and volatility are still very favorable for the future trend of Bitcoin.
Coinbase
Bitcoin
Further Reading
Fortune Shuffling: Bitcoin Jumps to Becoming the Ninth Largest Asset Globally, Satoshi Nakamoto Ranks as the 21st Richest
MicroStrategy Soars 23% in a Day, Outperforming BTC, and Issues $600 Million Convertible Bonds to Buy Bitcoin.